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ETS MAJOR FIELD TEST MFT BUSINESS EXAM |
ALL QUESTIONS AND CORRECT ANSWERS |
ALREADY GRADED A+ | VERIFIED ANSWERS |
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Fiedler proposes that all of the following determine whether a task- or relationship-oriented style is more effective except: a) Situational favorableness b) Leader-member relations c) Task structure d) Position power ------CORRECT ANSWER---------------A Which one of the following statements is correct given the following exchange rates? US $ per 1 foreign unit Country FRI THU South Africa 0.1028 0. Thailand 0.0284 0. a) On Thursday, one U.S. dollar was equal to 0.1023 South African rand. b) On Friday, one Thai baht was equal to $35.21. c) Both the South African rand and the Thai baht appreciated against the U.S. dollar from Thursday to Friday. d) The South African rand appreciated from Thursday to Friday against the U.S. dollar.
e) The U.S. dollar depreciated from Thursday to Friday against the Thai baht. ------CORRECT ANSWER---------------D Family branding refers to a group of a) similar brands of products from different makers b) different brands of products from different makers within the same industry c) different products marketed under a single brand name d) similar products sold by small, family-owned firms ------CORRECT ANSWER---------------C A project has a net present value of zero. Which one of the following best describes this project? a) The project has a zero percent rate of return. b) The project requires no initial cash investment. c) The project has no cash flows. d) The summation of all of the project's cash flows is zero. e) The project's cash inflows equal its cash outflows in current dollar terms ------CORRECT ANSWER---------------E What is the measure that indicates how precise a prediction of Y is based on X or, conversely, how inaccurate the prediction might be? a) Regression equation
a) 0. b) 0. c) 0. d) 1. e) None of the above ------CORRECT ANSWER---------------A Sessler Manufacturers made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be $1.75 a share. Secondly, all dividends after that will decrease by 1. percent annually. What is the maximum amount you should pay to purchase a share of this stock today if you require a 14 percent rate of return? a) $11. b) $12. c) $13. d) $14. e) $14.21 ------CORRECT ANSWER---------------A In ___________, provincial governments play a substantial role in trade and investment regulation a) China b) Norway c) Indonesia
d) Canada ------CORRECT ANSWER---------------D Douglass Interiors is considering two mutually exclusive projects and have determined that the crossover rate for these projects is 11.7 percent. Project A has an internal rate of return (IRR) of 15.3 percent and Project B has an IRR of 16.5 percent. Given this information, which one of the following statements is correct? a) Project A should be accepted as its IRR is closer to the crossover point than is Project B's IRR. b) Project B should be accepted as it has the higher IRR. c) Both projects should be accepted as both of the project's IRRs exceed the crossover rate. d) Neither project should be accepted since both of the project's IRRs exceed the crossover rate. e) You cannot determine which project should be accepted given the information provided. ------CORRECT ANSWER---------------E There are 10 rolls of film in a box and 3 are defective. Two rolls are to be selected without replacement. What is the probability of selecting a defective roll followed by another defective roll? a) 1/2, or 0. b) 1/4, or 0. c) 1/120, or about 0. d) 1/15, or about 0.07 ------CORRECT ANSWER---------------D
a) Paris Convention and Patent Cooperation Treaty b) International Patent Patrol and Patent Treaty c) Patent Protection Treaty and International Patent Patrol d) Patent Protection Treaty and Patent Cooperation Treaty ------CORRECT ANSWER---------------A In a large firm, the pool of applicants for the positions of sales manager and sales associate consists of three men and three women. If each candidate has an equal chance of being selected, what is the probability that both positions will be filled by men? a) 0. b) 0. c) 0. d) 0.50 ------CORRECT ANSWER---------------A Maxwell has been named to an upper-level management position at QVC. He will be working with transportation media, order processing, and development of marketing channels. Maxwell is involved in developing _____ strategies. a) product b) distribution c) promotional d) marketing ------CORRECT ANSWER---------------B
The principle of diversification tells us that: a) concentrating an investment in two or three large stocks will eliminate all of the unsystematic risk. b) concentrating an investment in three companies all within the same industry will greatly reduce the systematic risk. c) spreading an investment across five diverse companies will not lower the total risk. d) spreading an investment across many diverse assets will eliminate all of the systematic risk. e) spreading an investment across many diverse assets will eliminate some of the total risk ------CORRECT ANSWER---------------E The effect whereby slight demand variability is magnified as it moves back upstream in the supply chain is known as a) the bullwhip effect b) postponement c) collaborative replenishment d) direct-response delivery ------CORRECT ANSWER---------------A A nuclear power plant uses electronic sensors linked to computers to continually monitor processes and make instant (real-time) adjustments that control the power generation process. This is an example of a(n): a) Transaction processing system
a) Transaction processing systems b) Process control systems c) Functional information systems d) Executive support systems ------CORRECT ANSWER---------------D Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce. a) low, little b) low, considerable c) high, little d) high, considerable ------CORRECT ANSWER---------------D When a domestic firm permits a foreign company to manufacture and sell its product in exchange for a fee or royalty, the process is termed a) importing b) exporting c) licensing d) countertrading ------CORRECT ANSWER---------------C
Which of the following statements is NOT correct concerning the Cash Budget? a) It is not necessary to prepare any other budgets before preparing the Cash Budget b) The Cash Budget should be prepared before the Budgeted Income Statement c) The Cash Budget should be prepared before the Budgeted Balance Sheet d) The Cash Budget builds on earlier budgets and schedules as well as additional data ------CORRECT ANSWER---------------A A manager who chooses the wrong goals for the organization and makes poor use of the organization's resources in pursuing these goals is said to have: a) Low effectiveness/low efficiency b) Low effectiveness/high efficiency c) High effectiveness/low efficiency d) High effectiveness/high efficiency e) None of the above ------CORRECT ANSWER---------------A In the late 1970's and 1980's, the U.S. car manufactures sought to limit ________ import to the U.S.? a) Cuban b) Asian
Which of the following is an appropriate Federal Reserve action to stimulate the United States economy? a) Selling government bonds on the open market b) Increasing the discount rate c) Reducing the reserve requirement d) Cutting taxes ------CORRECT ANSWER---------------C A small number of people with complementary skills who are committed to a common purpose, a set of performance goals, and an approach for which they hold themselves mutually accountable is referred to as a a) committee b) task force c) group d) team ------CORRECT ANSWER---------------D A company is considering producing a product for a new market. The fixed costs required for manufacturing and delivering the product is $50,000. Labor and material costs are estimated to be approximately $25.00 per product. If the product is sold for $35.00 each, the firm's break-even volume would be: a) 50,000 units b) 5,000 units c) 2500 units
d) 500 units ------CORRECT ANSWER---------------B A problem associated with equity theory is that: a) it focuses on providing incentives for the long run when most workers are mainly concerned with incentives that apply to their current situation b) managers have a hard time applying it to real-world situations because of its abstract nature c) worker motivation is based on perceptions of fairness, and the perceptions workers have about their contributions are not always accurate d) it is concerned with the nature of the job itself rather than with what motivates the workers who perform the job ------CORRECT ANSWER-------- -------C All of the financial statements are for a period of time except the a) Income statement b) Owner's equity statement c) Balance sheet d) Statement of cash flows ------CORRECT ANSWER---------------C By assembling computers only after customers have paid them for, resulting in a lower finished goods inventory, Dell Computer Co. achieved: a) Increased quality b) A competitive advantage
a) General environment b) Task environment c) Economic environment d) Legal environment e) Political environment ------CORRECT ANSWER---------------B Which of the following is not one of the four primary functional areas of a firm? a) human resources b) legal c) marketing d) operations ------CORRECT ANSWER---------------B When employees use email, word processors, electronic scheduling / calendars, they are using which of the following? a) Transaction processing systems b) Process control systems c) Office automation systems d) Decision support systems ------CORRECT ANSWER---------------C Which of the following statements about a systems flowchart is true?
a) It is used in systems design to define and describe each piece of data. b) It is a method of writing programs using only three basic constructs: sequence, selection, and repetition. c) It documents the sequence of processing steps that take place in an information system. d) It documents the logical design of an information system. ------ CORRECT ANSWER---------------C The primary purpose of the statement of cash flows is to report a) A company's investing transactions b) A company's financing transactions c) Information about cash receipts and cash payments of a company d) The net increase or decrease in cash ------CORRECT ANSWER----------- ----C In service blueprinting, which line separates front office activities from back office activities? a) Line of visibility b) Line of intervention c) Line of influence d) Line of support ------CORRECT ANSWER---------------A
b) Identifying c) Financial decision making d) Communicating ------CORRECT ANSWER---------------C What is the median of 26, 30, 24, 32, 32, 31, 27 and 29? a) 32 b) 29 c) 30 d) 29. e) 30.5 ------CORRECT ANSWER---------------D Under the common law, the ____ must be the mirror image of the ____ a) contract, consideration. b) contract, offer c) offer, acceptance d) acceptance, offer ------CORRECT ANSWER---------------D Sue and Neal are twins. Sue invests $5,000 at 7 percent when she is 25 years old. Neal invests $5,000 at 7 percent when he is 30 years old. Both investments compound interest annually. Both Sue and Neal retire at age
- Which one of the following statements is correct assuming that neither Sue nor Neal has withdrawn any money from their accounts?
a) Sue will have less money when she retires than Neal. b) Neal will earn more interest on interest than Sue. c) Neal will earn more compound interest than Sue. d) If both Sue and Neal wait to age 70 to retire, then they will have equal amounts of savings. e) Sue will have more money than Neal as long as they retire at the same time ------CORRECT ANSWER---------------E In general, the __________ difficult it is for an organization to enter an industry as a new competitor, the __________ are the barriers to entry to this industry a) Less; lower b) More; lower c) More; higher d) Less; higher ------CORRECT ANSWER---------------C An open access good (or common property good), such as a fishery: a) Is rival but not excludable b) Is both rival and excludable c) Is neither rival nor excludable d) Is not rival but is excludable ------CORRECT ANSWER---------------A
